|
Cayman Islands*
(State or other jurisdiction of incorporation or organization) |
| |
514 1
(Primary Standard Industrial Classification Code Number) |
| |
38-4101973
(I.R.S. Employer Identification Number) |
|
|
Copies to:
|
| ||||||
|
Christopher P. Giordano
Jon Venick DLA Piper LLP (US) 1251 Avenue of the Americas, 27th Floor New York, NY 10010 (212) 335-4500 |
| |
Michael Johns
Michael Lockwood Maples and Calder PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands (345) 949-8066 |
| |
Adam O. Emmerich
David K. Lam DongJu Song Wachtell, Lipton, Rosen & Katz 51 West 52nd Street New York, NY 10019 (212) 403-1000 |
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|
CALCULATION OF REGISTRATION FEE
|
| ||||||||||||||||||||||||
|
Title of each class of securities to
be registered |
| |
Amount to be
Registered |
| |
Proposed maximum
offering price per share |
| |
Proposed maximum
aggregate offering price |
| |
Amount of
registration fee |
| ||||||||||||
|
Common stock(1)(2)(3)
|
| | | | 30,000,000 | | | | | | — | | | | | $ | 305,400,000(4) | | | | | $ | 39,641 | | |
|
Redeemable Warrants(1)(2)(5)(6)
|
| | | | 15,000,000 | | | | | | — | | | | | | — | | | | | | — | | |
|
Class A common stock issuable upon exercise of the redeemable warrants(1)(2)(7)
|
| | | | 7,500,000 | | | | | | — | | | | | $ | 76,350,000(8) | | | | | $ | 9,911 | | |
|
Total
|
| | | | | | | | | | | | | | | | | | | | | $ | 49,552 | | |
| | | |
Sincerely,
/s/ Irwin D. Simon
Irwin D. Simon
Executive Chairman of the Board of Directors
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| | | | | F-1 | | |
|
Annex A-1:
Purchase Agreement
|
| | | | A-1-1 | | |
|
Annex A-2:
Amendment No.1 to Purchase Agreement
|
| | | | A-2-1 | | |
|
Annex B-1:
Sponsor Support Agreement
|
| | | | B-1-1 | | |
|
Annex B-2:
Amendment No.1 to Sponsor Support Agreement
|
| | | | B-2-1 | | |
|
Annex C:
Form of Investors Agreement
|
| | | | C-1 | | |
|
Annex D:
Form of Whole Earth Brands, Inc. 2020 Long-Term Incentive Award Plan
|
| | | | D-1 | | |
|
Annex E:
Cayman Constitutional Documents of Act II
|
| | | | E-1 | | |
|
Annex F:
Form of Proposed Certificate of Incorporation
|
| | | | F-1 | | |
|
Annex G:
Form of Proposed Bylaws
|
| | | | G-1 | | |
|
Annex H
Form of Amended and Restated Warrant Agreement
|
| | | | H-1 | | |
| | |
Share Ownership in Whole Earth Brands, Inc.
Following the Business Combination |
| |||||||||||||||||||||
| | |
Assuming No Redemptions
|
| |
Assuming High Redemptions(1)
|
| ||||||||||||||||||
| | |
Number of
Shares |
| |
Percentage of
Outstanding Shares |
| |
Number of
Shares |
| |
Percentage of
Outstanding Shares |
| ||||||||||||
Public stockholders
|
| | | | 30,000,000 | | | | | | 62.5% | | | | | | 20,791,782 | | | | | | 46.9% | | |
Sponsor(2) | | | | | 4,500,000 | | | | | | 9.4% | | | | | | 4,500,000 | | | | | | 10.2% | | |
PIPE Investors
|
| | | | 7,500,000 | | | | | | 15.6% | | | | | | 7,500,000 | | | | | | 16.9% | | |
Sellers
|
| | | | 6,000,000 | | | | | | 12.5% | | | | | | 11,500,000 | | | | | | 26.0% | | |
Total(3)
|
| | | | 48,000,000 | | | | | | 100.0% | | | | | | 44,291,782 | | | | | | 100.0% | | |
| | |
Cayman Constitutional Documents
|
| |
Proposed Organizational Documents
|
|
Corporate Name | | | The Cayman Constitutional Documents provide the name of the company is “Act II Global Acquisition Corp.” | | | The Proposed Organizational Documents provide that the name of the corporation will be “Whole Earth Brands, Inc.” | |
| | | See paragraph 1 of the Existing Memorandum. | | | See Article First of the Proposed Certificate of Incorporation. | |
Perpetual Existence | | | The Cayman Constitutional Documents provide that if Act II does not consummate a business combination (as defined in the Cayman Constitutional Documents) by April 30, 2021, Act II will cease all operations except for the purposes of winding up and will redeem the public shares and liquidate Act II’s trust account. | | | The Proposed Organizational Documents do not include any provisions relating to Whole Earth Brands, Inc.’s ongoing existence; the default under the DGCL, will make Whole Earth Brands, Inc.’s existence perpetual. | |
| | | See Article 49 of the Cayman Constitutional Documents. | | | Default rule under the DGCL. | |
Exclusive Forum | | | The Cayman Constitutional Documents do not contain a provision adopting an exclusive forum for certain shareholder litigation. | | | The Proposed Organizational Documents adopt Delaware as the exclusive forum for certain stockholder litigation. | |
| | | | | | See Section Thirteenth, subsection (1) of the Proposed Certificate of Incorporation. | |
Provisions Related to Status as Blank Check Company
|
| | The Cayman Constitutional Documents include various provisions related to Act II’s status as a blank check company prior to the consummation of a business combination. | | | The Proposed Organizational Documents do not include such provisions related to Act II’s status as a blank check company, which no longer will apply upon consummation of the Transactions, as Act II will cease to be a blank check company at such time. | |
| | | See Article 49 of the Cayman Constitutional Documents. | | | | |
Sources of Funds (in millions) |
| | | | | | | | Uses of Funds (in millions) |
| | | | | | |
Existing cash in trust account(1)
|
| | | $ | 300 | | | |
Cash consideration to the Sellers
|
| | | $ | 450 | | |
Shares of Whole Earth Brands, Inc. issued to the Sellers(2)
|
| | | | 60 | | | |
Shares of Whole Earth Brands, Inc. issued to the Sellers(2)
|
| | | | 60 | | |
Private Placement(3)
|
| | | | 75 | | | |
Warrant Agreement Amendment Cost(5)
|
| | | | 11 | | |
New Net Debt(4)
|
| | | | 126 | | | |
Transaction fees and expenses
|
| | | | 40 | | |
Total Sources
|
| | | $ | 561 | | | |
Total Uses
|
| | | $ | 561 | | |
| | |
Three Months
Ended September 30, 2019 |
| |
Nine Months
Ended September 30, 2019 |
| ||||||
Statement of Operations Data: | | | | | | | | | | | | | |
Interest income
|
| | | $ | 1,798,866 | | | | | $ | 2,970,867 | | |
Unrealized gain (loss) on marketable securities held in trust account
|
| | | $ | (174,086) | | | | | $ | 31,696 | | |
Operating costs
|
| | | $ | 130,971 | | | | | $ | 226,642 | | |
Net income
|
| | | $ | 1,493,809 | | | | | $ | 2,775,921 | | |
Weighted average shares outstanding, basic and diluted(1)
|
| | | | 8,986,675 | | | | | | 8,176,576 | | |
Basic and diluted net income/(loss) per ordinary share(2)
|
| | | $ | (0.01) | | | | | $ | (0.01) | | |
| | |
As of September 30,
2019 |
| |||
Balance Sheet Data: | | | | | | | |
Total assets
|
| | | $ | 304,231,566 | | |
Total liabilities
|
| | | | 11,295,000 | | |
Act II Class A Shares, $0.0001 par value; 200,000,000 shares authorized; 1,491,670 shares issued and outstanding (excluding 28,508,330 shares subject to possible redemption)
|
| | | | 149 | | |
Class B ordinary shares, $0.0001 par value; 20,000,000 shares authorized; 7,500,000 shares issued and outstanding
|
| | | | 750 | | |
Additional paid in capital
|
| | | | 2,223,181 | | |
Retained earnings
|
| | | | 2,775,921 | | |
Total Shareholders’ Equity
|
| | | | 5,000,001 | | |
| |
Nine Months Ended September 30,
|
| |
Year Ended December 31,
|
| |||||||||||||||||||
(In millions)
|
| |
2019
|
| |
2018
|
| |
2018
|
| |
2017
|
| ||||||||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| |
(Audited)
|
| |
(Audited)
|
| ||||||||||||
Product revenues, net
|
| | | $ | 203.4 | | | | | $ | 217.9 | | | | | $ | 291.0 | | | | | $ | 288.0 | | |
Cost of goods sold
|
| | | | 117.6 | | | | | | 123.9 | | | | | | 167.9 | | | | | | 167.5 | | |
Gross profit
|
| | | | 85.8 | | | | | | 94.0 | | | | | | 123.1 | | | | | | 120.5 | | |
Selling, general and administrative expenses
|
| | | | 48.9 | | | | | | 55.3 | | | | | | 74.8 | | | | | | 77.5 | | |
Amortization of intangible assets
|
| | | | 8.0 | | | | | | 8.3 | | | | | | 11.1 | | | | | | 11.1 | | |
Restructuring and other non-recurring expenses
|
| | | | 4.6 | | | | | | 10.8 | | | | | | 9.5 | | | | | | 13.1 | | |
Operating income
|
| | | | 24.3 | | | | | | 19.6 | | | | | | 27.7 | | | | | | 18.8 | | |
Other expense, net
|
| | | | 1.0 | | | | | | 1.5 | | | | | | 1.5 | | | | | | 3.9 | | |
Income before income taxes
|
| | | | 23.3 | | | | | | 18.1 | | | | | | 26.2 | | | | | | 14.9 | | |
Provision/(Benefit) for income taxes
|
| | | | 5.2 | | | | | | 3.3 | | | | | | 5.3 | | | | | | (10.2) | | |
Net income
|
| | | $ | 18.1 | | | | | $ | 14.8 | | | | | $ | 20.9 | | | | | $ | 25.1 | | |
| | |
As of
September 30, 2019 |
| |
As of
December 31, 2018 |
| ||||||
| |
(Unaudited)
|
| |
(Audited)
|
| |||||||
Balance Sheet Data: | | | | ||||||||||
Working Capital
|
| | | $ | 135.3 | | | | | $ | 135.5 | | |
Total Assets
|
| | | | 592.5 | | | | | | 608.0 | | |
Total Liabilities
|
| | | | 118.2 | | | | | | 123.5 | | |
Net parent investment
|
| | | | 474.3 | | | | | | 484.5 | | |
| | |
COMBINED
MERISANT/ MAFCO |
| |
ACT II
|
| |
ADJUSTMENTS
|
| |
ADJ.#
|
| |
PRO FORMA
|
| |||||||||||||||
Product revenues
|
| | | $ | 203,400 | | | | | | | | | | | | | | | | | | | | | | | $ | 203,400 | | |
Cost of goods sold
|
| | | | 117,600 | | | | | | | | | | | | | | | | | | | | | | | | 117,600 | | |
GROSS PROFIT
|
| | | | 85,800 | | | | | | | | | | | | | | | | | | | | | | | | 85,800 | | |
Selling, general & administrative expenses
|
| | | | 48,900 | | | | | $ | 227 | | | | | | | | | | | | | | | | | | 49,127 | | |
Restructuring and other non-recurring
expenses |
| | | | 4,600 | | | | | | | | | | | | | | | | | | | | | | | | 4,600 | | |
Amortization of intangibles
|
| | | | 8,000 | | | | | | | | | | | $ | (2,325) | | | | | | a | | | | | | 5,675 | | |
OPERATING INCOME
|
| | | | 24,300 | | | | | | (227) | | | | | | (2,325) | | | | | | | | | | | | 26,398 | | |
Interest expense on bank debt
|
| | | | | | | | | | | | | | | | 6,938 | | | | | | c | | | | | | 6,938 | | |
Interest income
|
| | | | | | | | | | (2,971) | | | | | | 2,971 | | | | | | b | | | | | | 0 | | |
Unrealized gain on Trust Account investments
|
| | | | | | | | | | (32) | | | | | | 32 | | | | | | b | | | | | | 0 | | |
Other expense, net
|
| | | | 1,000 | | | | | | | | | | | | | | | | | | | | | | | | 1,000 | | |
INCOME (LOSS) BEFORE INCOME TAXES
|
| | | | 23,300 | | | | | | (3,230) | | | | | | 1,610 | | | | | | | | | | | | 18,460 | | |
Provision for income taxes
|
| | | | 5,200 | | | | | | | | | | | | (1,323) | | | | | | e | | | | | | 3,877 | | |
NET (LOSS) INCOME
|
| | | $ | 18,100 | | | | | $ | (3,230) | | | | | $ | 287 | | | | | | | | | | | $ | 14,583 | | |
Primary and Diluted Earnings Per Share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Scenario 1 – Assuming No Redemptions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted Average number of shares
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 48,000,000 | | |
Earnings per share
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 0.30 | | |
Scenario 2 – Assuming High Redemptions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted Average number of shares
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 44,291,782 | | |
Earnings per share
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 0.33 | | |
| | |
COMBINED
MERISANT/ MAFCO |
| |
ACT II
|
| |
ADJUSTMENTS
|
| |
ADJ.#
|
| |
PRO FORMA
|
| |||||||||||||||
Product revenues
|
| | | $ | 291,000 | | | | | | | | | | | | | | | | | | | | | | | $ | 291,000 | | |
Cost of goods sold
|
| | | | 167,900 | | | | | | | | | | | | | | | | | | | | | | | | 167,900 | | |
GROSS PROFIT
|
| | | | 123,100 | | | | | | | | | | | | | | | | | | | | | | | | 123,100 | | |
Selling, general & administrative expenses
|
| | | | 74,800 | | | | | $ | 227 | | | | | $ | (800) | | | | | | d | | | | | | 74,227 | | |
Restructuring and other non-recurring expenses
|
| | | | 9,500 | | | | | | | | | | | | | | | | | | | | | | | | 9,500 | | |
Amortization of intangibles
|
| | | | 11,100 | | | | | | | | | | | | (3,100) | | | | | | a | | | | | | 8,000 | | |
OPERATING INCOME
|
| | | | 27,700 | | | | | | (227) | | | | | | (3,100) | | | | | | | | | | | | 31,373 | | |
Interest expense on bank debt
|
| | | | | | | | | | | | | | | | 9,250 | | | | | | c | | | | | | 9,250 | | |
Interest income
|
| | | | | | | | | | (2,971) | | | | | | 2,971 | | | | | | b | | | | | | 0 | | |
Unrealized gain on Trust Account investments
|
| | | | | | | | | | (32) | | | | | | 32 | | | | | | b | | | | | | 0 | | |
Other expense, net
|
| | | | 1,500 | | | | | | | | | | | | | | | | | | | | | | | | 1,500 | | |
INCOME BEFORE INCOME TAXES
|
| | | | 26,200 | | | | | | (3,230) | | | | | | 3,147 | | | | | | | | | | | | 20,623 | | |
Provision for income taxes
|
| | | | 5,300 | | | | | | | | | | | | (969) | | | | | | e | | | | | | 4,331 | | |
NET INCOME
|
| | | $ | 20,900 | | | | | $ | (3,230) | | | | | $ | 2,178 | | | | | | | | | | | $ | 16,292 | | |
Primary and Diluted Earnings Per Share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Scenario 1 – Assuming No Redemptions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted Average number of shares
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 48,000,000 | | |
Earnings per share
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 0.34 | | |
Scenario 2 – Assuming High Redemptions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted Average number of shares
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 44,291,782 | | |
Earnings per share
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 0.37 | | |
| | | | | | | | | | | | | | |
Scenario 1 Assuming No
Redemptions |
| |
Scenario 2 Assuming High
Redemptions |
| ||||||||||||||||||||||||
| | |
COMBINED
MERISANT/ MAFCO |
| |
ACT II
|
| |
ADJUSTMENTS
ASSUMING NO REDEMPTIONS |
| |
ADJ.#
|
| |
PRO FORMA
BALANCE SHEET ASSUMING NO REDEMPTIONS |
| |
ADJUSTMENTS
ASSUMING MAXIMUM REDEMPTIONS |
| |
ADJ.#
|
| |
PRO FORMA
BALANCE SHEET ASSUMING MAXIMUM REDEMPTIONS |
| ||||||||||||||||||
Balance Sheet Data – As of September 30, 2019
(in thousands except per share amounts) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total current assets
|
| | | $ | 186,200 | | | | | $ | 1,229 | | | | | $ | 54,053 | | | | | | | | $ | 241,482 | | | | | $ | 16,050 | | | | | | | | $ | 203,479 | | |
Total assets
|
| | | | 592,500 | | | | | | 304,232 | | | | | | (218,350) | | | | | | | | | 678,382 | | | | | | (256,353) | | | | | | | | | 640,379 | | |
Total current liabilities
|
| | | | 50,900 | | | | | | 15 | | | | | | | | | | | | | | | 50,915 | | | | | | 0 | | | | | | | | | 50,915 | | |
Total liabilities
|
| | | | 118,200 | | | | | | 11,295 | | | | | | 155,920 | | | | | | | | | 285,415 | | | | | | 155,920 | | | | | | | | | 285,415 | | |
Total equity
|
| | | | 474,300 | | | | | | 5,000 | | | | | | (86,333) | | | | | | | | | 392,967 | | | | | | (124,336) | | | | | | | | | 354,964 | | |
Trading Date
|
| |
Units (ACTTU)
|
| |
Act II Class A
Shares (ACTT) |
| |
Warrants (ACTTW)
|
| |||||||||
December 19, 2019
|
| | | $ | 10.50 | | | | | $ | 9.98 | | | | | $ | 0.96 | | |
February 10, 2020
|
| | | $ | 10.75 | | | | | $ | 10.19 | | | | | $ | 1.28 | | |
| | | | | | | | |
Pro Forma Combined(1)
|
| |||||||||
| | |
Act II
|
| |
No Redemptions
|
| |
High Redemptions
|
| |||||||||
Book Value per Share as of September 30, 2019
|
| | | $ | 7.81 | | | | | $ | 8.19 | | | | | $ | 8.01 | | |
Net Income per Common Share – Basic and Diluted | | | | | | | | | | | | | | | | | | | |
For the year ended December 31, 2018
|
| | | | — | | | | | $ | 0.34 | | | | | $ | 0.37 | | |
For the nine months ended September 30, 2019
|
| | | $ | (0.01) | | | | | $ | 0.30 | | | | | $ | 0.33 | | |